Building on the momentum of the EU's electricity transition in the next five years

The European Green Deal has delivered impressive progress in just five years. The new EU Commission can use its next landmark policy package – the Clean Industrial Deal – to build on the momentum of the EU’s electricity transition over the next five years and continue to deliver benefits for households and businesses alike.

There are compelling reasons to accelerate cleaning up the EU power sector. Wind and solar growth can drive down energy prices and lower dependence on expensive and risky fossil fuel imports, especially from Russia. Renewable energies are overwhelmingly popular with European citizens. As part of the Clean Industrial Deal, the EU has the opportunity to secure the skilled workers and value chain for the clean technologies that are set to dominate the future of energy markets.

With global markets becoming increasingly competitive, the EU needs to put the following priority actions on top of the policy agenda in 2025:

• The roadmap to ending Russian energy imports and the 2040 climate target proposal should clearly signal the pivotal contribution of wind power;
• Continued support should be provided to the European wind industry, including through cross-border investments;
• Permitting reforms for renewables need to be implemented, following already established examples; 
• Renewables auctions with improved designs need to be executed on time, which is essential to guarantee the necessary pace of wind deployment; 
• National governments need to finalise spatial energy plans and remove overly restrictive minimum distance rules for wind farms;
• The Electrification Action Plan should enable smart electrification that helps consumers reduce their bills and improves the business case for renewables;
• Existing electricity market rules need to be implemented to improve market access and remove barriers to accelerated deployment of clean flexibility, with a focus on battery storage and demand-side flexibility;
• The existing grid policy framework, including anticipatory grid investments, should be implemented without delay, ideally through a dedicated task force;
• A one-stop-shop for grids should be considered at the EU level, which would streamline access to finance for grid investments, enabling beneficial regional connectivity.